The Republic of China Premier, Cho Jung-tai, stated on the 26th that if the opposition party is willing to compromise, he hopes to unfreeze the defense budget, restore the foreign affairs budget for the Ministry of Foreign Affairs, and provide subsidies for Taiwan Power Company. In response to the opposition’s demands for his resignation, Cho Jung-tai said he is willing to resign, allowing the parliament to reshuffle the cabinet for a fresh election, but he believes the opposition lacks the courage.
Cho Jung-tai recently appeared on the program “Let’s Chat After Work” and the interview aired on the evening of the 26th. He mentioned that after the holidays, upon approval by President Lai Ching-te, they will review the budget for the fiscal year 114 (2025). This review will give the parliament the opportunity to reconsider bills and budgets, allowing discussions to reach a common direction.
When asked which departments’ budgets he would fight for first if the opposition party is willing to compromise, Cho Jung-tai mentioned that they would first unfreeze the frozen NT$74.4 billion defense budget, then restore the foreign affairs-related expenses for the Ministry of Foreign Affairs, which should not be cut. The third priority would be subsidies for Taiwan Power Company, as it relates to people’s livelihood. Next would be the Ministry of Culture, as culture is the root and its related budget must be restored.
Cho Jung-tai also expressed his hope to restore the President’s discretionary budget. He emphasized that the funds are needed for hosting foreign dignitaries and assisting various vulnerable groups. Even his own discretionary budget could be completely adjusted as long as others are reinstated, avoiding any need for a cabinet reshuffle.
Regarding the amendment passed by the parliament at the end of last year to the Financial Structure Act, Cho Jung-tai mentioned that while the existing financial structure law may not be ideal, it is the most reliable one to implement.
The Finance Structure Act allows central government funds to be allocated to local governments. Cho Jung-tai stressed that allocating money without considering responsibilities is not acceptable. He believes the act is a critical point that cannot be easily resolved.
Cho Jung-tai mentioned that the Executive Yuan has proposed three solutions regarding the Finance Structure Act, but they have not had the opportunity to discuss them with the parliament due to ongoing struggles. He hopes that a good solution can be reached through dialogue to ensure funds are distributed to localities along with responsibilities and accountabilities.
Concerning the Constitutional Litigation Law, Cho Jung-tai discussed a constitutional interpretation proposed by the DPP legislative caucus, which includes provisional rulings. A provisional ruling freezes the new law to allow the old law to remain in effect.
Due to the current shortage of Supreme Court justices (with only 8 justices), at least 10 justices are required to review laws passed by the legislature. Cho Jung-tai pointed out that there has been considerable debate within the legal community on this issue, including suggestions for preventive remedies. He emphasized that he cannot make decisions for the justices but will fully respect their judgments.
Critiques have been raised about the increase in total expenditures during the presidencies of former President Ma Ying-jeou and President Tsai Ing-wen compared to the previous years. Cho Jung-tai clarified that this year’s total budget was initially set at NT$3.1325 trillion, with many new items, including public infrastructure, health insurance subsidies, social housing, and defense, totaling NT$280.6 billion. Subtracting this amount from the total budget, it is approximately NT$2.8519 trillion, similar to last year’s figure.
However, Cho Jung-tai revealed that the parliament slashed NT$207.5 billion from the budget. After deducting the new items from the central government’s budget, only about NT$2.6 trillion would remain, less than last year unless the new projects are scrapped. He questioned whether at this stage of development, it is possible to abandon all new projects.
From the perspective of GDP percentage, Cho Jung-tai mentioned that the budget as a portion of GDP indicates the country’s strength and its citizens’ efforts. This year’s total budget accounted for 12.4% of GDP, compared to 15.4% in 1999, 12.2% in 2013, and 13.3% in 2013. The percentage has been around 12-13% in recent years, showing no significant increase this year.
Cho Jung-tai stated that government tax revenues have exceeded budgeted amounts over the past three years, leading to higher budgeted expenditures. He emphasized that with Taiwan’s economic growth rate at 4.27% last year, both industry and government service capacities need to increase to meet various public needs, such as long-term care and social housing. Not only has the central government increased its capacity, but local governments have also bolstered their budgets.
When asked about the implications of allocating NT$100 billion to Taiwan Power Company’s budget being omitted, Cho Jung-tai expressed concerns about possible electricity price hikes but hoped that the company could withstand the pressure without affecting the public. He underscored that the Energy Price Review Commission had adopted certain principles to ensure Taiwan Power Company’s financial stability, and discontinuing subsidies now would be unfair to the company’s employees. The government aims to minimize the impact by providing public budget subsidies to help Taiwan Power Company maintain its financial health. As Taiwan Power Company has already incurred losses of NT$280 billion, without subsidies, these losses could reach almost NT$400 billion, causing significant repercussions.
Cho Jung-tai indicated that if subsidies were cut in the future, it might lead to electricity price hikes. However, he reiterated the government’s commitment to balancing the situation to prevent any sudden impact on household electricity consumption, emphasizing the need to monitor the situation in the coming months for any necessary adjustments.